Cricut (CRCT) 10-Q8 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Aug. 01, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-40257
Entity Registrant Name	Cricut, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0282025
Entity Address, Address Line One	10855 South River Front Parkway
Entity Address, City or Town	South Jordan
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84095
City Area Code	385
Local Phone Number	351-0633
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	CRCT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001828962
Current Fiscal Year End Date	--12-31
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		52,972,343
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		166,857,988

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 286,121	$ 224,943
Marketable securities	75,364	74,256
Accounts receivable, net	88,651	136,539
Inventories	294,330	351,682
Prepaid expenses and other current assets	18,574	23,842
Total current assets	763,040	811,262
Property and equipment, net	58,471	63,407
Operating lease right-of-use asset	14,576	17,078
Intangible assets, net	380	760
Deferred tax assets	31,311	23,819
Other assets	30,563	33,301
Total assets	898,341	949,627
Current liabilities:
Accounts payable	67,171	63,195
Accrued expenses and other current liabilities	48,289	69,775
Deferred revenue, current portion	39,605	34,869
Operating lease liabilities, current portion	5,439	5,436
Dividends payable, current portion	234,693	80,781
Total current liabilities	395,197	254,056
Operating lease liabilities, net of current portion	11,141	13,935
Deferred revenue, net of current portion	2,812	3,789
Other non-current liabilities	6,884	5,112
Total liabilities	416,034	276,892
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022.	0	0
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of June 30, 2023, 219,830,304 shares issued and outstanding as of June 30, 2023; 1,250,000,000 shares authorized as of December 31, 2022, 219,656,587 shares issued and outstanding as of December 31, 2022.	220	220
Additional paid-in capital	482,724	672,990
Retained earnings	0	0
Accumulated other comprehensive loss	(637)	(475)
Total stockholders’ equity	482,307	672,735
Total liabilities and stockholders’ equity	$ 898,341	$ 949,627

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,250,000,000	1,250,000,000
Common stock, shares issued (in shares)	219,830,304	219,656,587
Common stock, shares outstanding (in shares)	219,830,304	219,656,587

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 177,765	$ 183,757	$ 358,992	$ 428,540
Cost of revenue:
Total cost of revenue	90,110	98,329	194,671	244,092
Gross profit	87,655	85,428	164,321	184,448
Operating expenses:
Research and development	16,346	20,055	34,147	40,585
Sales and marketing	29,407	31,516	59,023	64,305
General and administrative	22,652	13,828	41,372	28,122
Total operating expenses	68,405	65,399	134,542	133,012
Income from operations	19,250	20,029	29,779	51,436
Total other income (expense), net	3,691	322	6,006	283
Income before provision for income taxes	22,941	20,351	35,785	51,719
Provision for income taxes	6,917	6,524	10,662	14,388
Net income	16,024	13,827	25,123	37,331
Other comprehensive income (loss):
Change in net unrealized gains (losses) on marketable securities, net of tax	(318)	(343)	(130)	(343)
Change in foreign currency translation adjustment, net of tax	(50)	(110)	(32)	(122)
Comprehensive income	$ 15,656	$ 13,374	$ 24,961	$ 36,866
Earnings per share, basic (in dollars per share)	$ 0.07	$ 0.06	$ 0.12	$ 0.17
Earnings per share, diluted (in dollars per share)	$ 0.07	$ 0.06	$ 0.11	$ 0.17
Weighted-average common shares outstanding, basic (in shares)	216,963,697	214,852,256	216,236,887	213,634,584
Weighted-average common shares outstanding, diluted (in shares)	219,915,839	220,791,640	219,597,977	221,199,963
Connected machines
Revenue:
Total revenue	$ 37,284	$ 35,438	$ 71,415	$ 97,829
Cost of revenue:
Total cost of revenue	33,765	34,882	66,831	95,595
Subscriptions
Revenue:
Total revenue	76,129	67,604	151,212	132,382
Cost of revenue:
Total cost of revenue	7,898	6,181	15,529	12,433
Accessories and materials
Revenue:
Total revenue	64,352	80,715	136,365	198,329
Cost of revenue:
Total cost of revenue	$ 48,447	$ 57,266	$ 112,311	$ 136,064

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Common stock, balance at beginning of period (in shares) at Dec. 31, 2021		221,913,559
Balance at beginning of period at Dec. 31, 2021	$ 673,976	$ 222	$ 717,369	$ (43,560)	$ (55)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,504			23,504
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		10,387
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(1,328)		(1,328)
Stock-based compensation	10,500		10,500
Other comprehensive income (loss)	(12)				(12)
Compensatory units repurchased	(14)		(14)
Forfeiture of unvested common stock (in shares)		(114,332)
Forfeiture of unvested common stock	0
Common stock, balance at end of period (in shares) at Mar. 31, 2022		221,809,614
Balance at end of period at Mar. 31, 2022	706,626	$ 222	726,527	(20,056)	(67)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2021		221,913,559
Balance at beginning of period at Dec. 31, 2021	673,976	$ 222	717,369	(43,560)	(55)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	37,331
Common stock, balance at end of period (in shares) at Jun. 30, 2022		222,186,359
Balance at end of period at Jun. 30, 2022	728,260	$ 222	734,787	(6,229)	(520)
Common stock, balance at beginning of period (in shares) at Mar. 31, 2022		221,809,614
Balance at beginning of period at Mar. 31, 2022	706,626	$ 222	726,527	(20,056)	(67)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,827			13,827
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		500,237
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(3,218)		(3,218)
Stock-based compensation	11,478		11,478
Other comprehensive income (loss)	(453)				(453)
Forfeiture of unvested common stock (in shares)		(123,492)
Forfeiture of unvested common stock	0
Common stock, balance at end of period (in shares) at Jun. 30, 2022		222,186,359
Balance at end of period at Jun. 30, 2022	728,260	$ 222	734,787	(6,229)	(520)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2022		219,656,587
Balance at beginning of period at Dec. 31, 2022	672,735	$ 220	672,990	0	(475)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,099			9,099
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		43,671
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(169)		(169)
Forfeiture of unvested common stock and dividend equivalents (in shares)		103,906
Forfeiture of unvested common stock and dividend equivalents	(275)		(275)
Repurchase of common stock (in shares)		(346,699)
Repurchase of common stock	(3,244)	$ (1)	(3,243)
Dividend equivalents issued	4,366		4,366
Stock-based compensation	10,895		10,895
Other comprehensive income (loss)	206				206
Common stock, balance at end of period (in shares) at Mar. 31, 2023		219,249,653
Balance at end of period at Mar. 31, 2023	694,163	$ 219	685,114	9,099	(269)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2022		219,656,587
Balance at beginning of period at Dec. 31, 2022	672,735	$ 220	672,990	0	(475)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,123
Common stock, balance at end of period (in shares) at Jun. 30, 2023		219,830,304
Balance at end of period at Jun. 30, 2023	482,307	$ 220	482,724	0	(637)
Common stock, balance at beginning of period (in shares) at Mar. 31, 2023		219,249,653
Balance at beginning of period at Mar. 31, 2023	694,163	$ 219	685,114	9,099	(269)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,024			16,024
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		884,619
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(4,582)	$ 1	(4,583)
Forfeiture of unvested common stock and dividend equivalents (in shares)		199,898
Forfeiture of unvested common stock and dividend equivalents	(120)		(120)
Repurchase of common stock (in shares)		(104,070)
Repurchase of common stock	(967)		(967)
Stock-based compensation	12,542		12,542
Other comprehensive income (loss)	(368)				(368)
Dividends declared	(234,625)		(209,502)	(25,123)
Common stock, balance at end of period (in shares) at Jun. 30, 2023		219,830,304
Balance at end of period at Jun. 30, 2023	$ 482,307	$ 220	$ 482,724	$ 0	$ (637)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 25,123	$ 37,331
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization (including amortization of debt issuance costs)	14,378	12,129
Bad debt expense	6,563	0
Impairments	1,959	0
Stock-based compensation	22,307	19,360
Deferred income tax	(7,447)	0
Non-cash lease expense	2,478	2,406
Unrealized foreign currency loss	599	0
Provision for inventory obsolescence	10,280	4,454
Other	(1,290)	(59)
Changes in operating assets and liabilities:
Accounts receivable	40,665	118,447
Inventories	50,356	(64,783)
Prepaid expenses and other current assets	5,286	4,237
Other assets	(523)	(594)
Accounts payable	4,277	(91,840)
Accrued expenses and other current liabilities and other non-current liabilities	(16,457)	(25,990)
Operating lease liabilities	(2,702)	(1,861)
Deferred revenue	3,760	(231)
Net cash and cash equivalents provided by operating activities	159,612	13,006
Cash flows from investing activities:
Purchases of marketable securities	0	(84,601)
Proceeds from maturities of marketable securities	0	807
Purchases of property and equipment, including capitalized software development costs	(12,825)	(17,775)
Net cash and cash equivalents used in investing activities	(12,825)	(101,569)
Cash flows from financing activities:
Repurchases of common stock	(4,210)	0
Repurchase of compensatory units	0	(14)
Proceeds from exercise of stock options	208	31
Employee tax withholding payments on stock-based awards	(5,799)	(5,048)
Cash dividend	(75,808)	0
Net cash and cash equivalents used in financing activities	(85,609)	(5,031)
Effect of exchange rate on changes on cash and cash equivalents	0	(232)
Net increase (decrease) in cash and cash equivalents	61,178	(93,826)
Cash and cash equivalents at beginning of period	224,943	241,597
Cash and cash equivalents at end of period	286,121	147,771
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	0	0
Cash paid during the period for income taxes	12,086	5,967
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	0	4,307
Property and equipment included in accounts payable and accrued expenses and other current liabilities	2,447	5,895
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities	483	388
Stock-based compensation capitalized for software development costs	975	1,153
Leasehold improvements acquired through tenant allowances	0	752
Dividends declared but unpaid	$ 234,625	$ 0

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
Description of Business and Basis of Presentation	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Nature of Business Cricut, Inc. (“Cricut” or the “Company”) is a designer and marketer of a creativity platform that enables users to turn ideas into professional-looking handmade goods. Using the Company’s versatile connected machines, design apps and accessories and materials, users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations. The Company’s connected machines and related accessories and materials and subscription services are primarily marketed under the Cricut brand in the United States, as well as Europe and other countries of the world. Headquartered in South Jordan, Utah, the Company is an innovator in its industry, focused on bringing innovative technology (automation and consumerization of industrial tools) to the craft, DIY and home décor categories. The Company’s condensed consolidated financial statements include the operations of its wholly owned subsidiaries, which are located throughout Europe and in the Asia-Pacific region. The Company designs, markets and distributes the Cricut family of products, including connected machines, design apps and accessories and materials. In addition, Cricut sells a broad line of images, fonts and projects for purchase à la carte. The Company organizes its business into the following three reportable segments: Connected Machines, Subscriptions, and Accessories and Materials. See Note 16, Segment Information, for further discussion of the Company’s segment reporting structure. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2022 (The “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading. The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2023, or any other period. There were no material changes to the Company's significant accounting policies during the six months ended June 30, 2023.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price (“SSP”) of performance obligations, estimating variable consideration such as sales incentives and product returns. Other estimates include the warranty reserve, allowance for doubtful accounts, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the ongoing pandemic and the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates. Fair Value Measurement The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Money market funds and certain marketable securities are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Other marketable securities such as U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. There were no liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022. Earnings Per Share Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period. Accounts Receivable Accounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts. If a retailer fails to follow the policies and guidelines in our sales agreements, we may choose to temporarily or permanently stop shipping product to that retailer.

Revenue and Deferred Revenue

Revenue and Deferred Revenue	6 Months Ended
Revenue and Deferred Revenue	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue and Deferred Revenue	Revenue and Deferred RevenueDeferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine to the unspecified upgrades and enhancements and the Company’s cloud-based services. The Company has no material contract assets as of June 30, 2023 and December 31, 2022. The following table summarizes the changes in the deferred revenue balance for the six months ended June 30, 2023 and 2022: Six Months Ended June 30, 2023 2022 (in thousands) Deferred revenue, beginning of period $ 38,658 $ 35,405 Recognition of revenue included in beginning of period deferred revenue (27,416) (23,938) Revenue deferred, net of revenue recognized on contracts in the respective period 31,175 23,707 Deferred revenue, end of period $ 42,417 $ 35,174 As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance. The Company expects the following recognition of deferred revenue as of June 30, 2023: Year Ended December 31, 2023 (remainder of year) 2024 2025 2026 Total (in thousands) Revenue expected to be recognized $ 31,828 $ 9,125 $ 1,349 $ 115 $ 42,417 The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 16 under the heading “Segment Information.” Revenue recognized during the three and six months ended June 30, 2023 related to performance obligations satisfied or partially satisfied was $0.2 million and $1.2 million, respectively. The following table presents the total revenue by geography based on the ship-to address for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) North America* $ 145,124 $ 159,479 $ 292,880 $ 367,784 International 32,641 24,278 66,112 60,756 Total revenue $ 177,765 $ 183,757 $ 358,992 $ 428,540 *North America revenue consists of revenues from the United States and Canada.

Cash, Cash Equivalents, and Fin

Cash, Cash Equivalents, and Financial Instruments	6 Months Ended
Cash, Cash Equivalents, and Financial Instruments	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Financial Instruments	Cash, Cash Equivalents, and Financial Instruments The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of June 30, 2023 and December 31, 2022: As of June 30, 2023 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities (in thousands) Cash $ 247,365 $ — $ — $ — $ 247,365 $ 247,365 $ — Level 1: Money market funds 38,756 — — — 38,756 38,756 — Subtotal 38,756 — — — 38,756 38,756 — Level 2: U.S. treasury securities 75,942 — — (578) 75,364 — 75,364 Subtotal 75,942 — — (578) 75,364 — 75,364 Total $ 362,063 $ — $ — $ (578) $ 361,485 $ 286,121 $ 75,364 As of December 31, 2022 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities (in thousands) Cash $ 155,459 $ — $ — $ — $ 155,459 $ 155,459 $ — Level 1: Money market funds 69,484 — — — 69,484 69,484 — Subtotal 69,484 — — — 69,484 69,484 — Level 2: U.S. treasury securities 74,659 — — (403) 74,256 — 74,256 Subtotal 74,659 — — (403) 74,256 — 74,256 Total $ 299,602 $ — $ — $ (403) $ 299,199 $ 224,943 $ 74,256 Marketable securities held as of June 30, 2023 generally mature over the next five

Inventories

Inventories	6 Months Ended
Inventories	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are comprised of the following: As of June 30, As of December 31, (in thousands) Raw materials $ 39,530 $ 40,911 Finished goods 281,484 340,557 Total inventories $ 321,014 $ 381,468 Inventories current $ 294,330 $ 351,682 Inventories non-current (included in other assets) $ 26,684 $ 29,786 The Company has included zero and $4.5 million in finished goods for connected machines that are currently undergoing rework prior to being in a sellable condition as of June 30, 2023 and December 31, 2022, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
Accrued Expenses and Other Current Liabilities	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of June 30, As of December 31, (in thousands) Sales incentives $ 23,536 $ 35,552 Other accrued liabilities and other current liabilities 24,753 34,223 Total accrued expenses $ 48,289 $ 69,775

Revolving Credit Facility

Revolving Credit Facility	6 Months Ended
Revolving Credit Facility	Jun. 30, 2023
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility On August 4, 2022, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A, Citigroup N.A., PNC Bank, N.A., KeyBank, N.A., and other parties. The Credit Agreement replaced the Company’s prior asset-based Credit Agreement with JPMorgan Chase Bank, N.A., Citigroup N.A., and Origin Bank. The Credit Agreement provides for a five-year revolving credit facility (the “Credit Facility”) of up to $300.0 million, maturing on August 4, 2027. In addition, during the term of the Credit Agreement, the Company may increase the aggregate amount of the Credit Facility by up to an additional $150.0 million, (for maximum aggregate lender commitments of up to $450.0 million), subject to customary conditions under the Credit Agreement, including obtaining a consent from participating lenders (or another lender, if applicable) to such increase. The Credit Facility may be used to issue letters of credit and for other business purposes, including working capital needs. The current unused fee rate is 0.175% on per annum basis. As of June 30, 2023, and December 31, 2022 total unamortized debt issuance costs were $1.3 million and $1.5 million, respectively. The Credit Agreement is collateralized by substantially all of the Company’s assets and contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Credit Agreement will not permit the leverage ratio to be greater than 3.0 to 1.0, measured on the last day of any fiscal quarter. In addition, the Credit Agreement will not permit the interest coverage ratio to be less than 3.0 to 1.0, for any period of four consecutive quarters, measured on the last day of any fiscal quarter. Management has determined that the Company was in compliance with all financial and non-financial debt covenants as of June 30, 2023. As of June 30, 2023 and December 31, 2022, no amounts were outstanding under the Credit Agreement and available borrowings were $300.0 million.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes interim period income taxes by applying an estimated annual effective tax rate to our year-to-date income from operations before income taxes, except for significant unusual or infrequently occurring items. The estimated effective tax rate is adjusted each quarter. The estimated annual effective tax rate was 30.2% and 29.8% for the three and six months ended June 30, 2023, respectively, and 32.1% and 27.8% for the three and six months ended June 30, 2022, respectively. The Company’s provision for income taxes was $6.9 million and $10.7 million, respectively, for the three and six months ended June 30, 2023, and $6.5 million and $14.4 million, respectively, for the three and six months ended June 30, 2022. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to discrete tax items including a stock-based compensation difference due to the decrease in stock price upon vesting versus the stock price at the grant date. The Company reviews its deferred tax assets for realization based upon historical taxable income, prudent and feasible tax planning strategies, the expected timing of the reversals of existing temporary differences and expected future taxable income. The Company has concluded that it is more likely than not that the net deferred tax

Capital Structure

Capital Structure	6 Months Ended
Capital Structure	Jun. 30, 2023
Equity [Abstract]
Capital Structure	Capital Structure As of June 30, 2023, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001 per share, and 1,250,000,000 shares of common stock, par value $0.001 per share, which was divided between two series: Class A common stock and Class B common stock. As of June 30, 2023, the Company had 1,000,000,000 shares of Class A common stock and 250,000,000 shares of Class B common stock authorized and 52,675,233 shares of Class A common stock and 167,155,071 shares of Class B common stock issued and outstanding. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to five votes per share and is convertible at any time into one share of Class A common stock. During the six months ended June 30, 2023 and 2022, 8,573,915 and 5,653,017 shares of Class B common stock were converted to Class A common stock, respectively. Stock Repurchase Program On July 19, 2022, the Company’s Board of Directors approved a common stock repurchase program under which the Company may repurchase shares of its outstanding Class A common stock up to an aggregate transactional value of $50 million, depending on the Company’s continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date. During the six months ended June 30, 2023, the Company repurchased and retired 450,769 shares of our Class A common stock for $4.2 million under this authorization. Dividends On May 18, 2023, the Company declared a special dividend of $1.00 per share on its Class A and Class B common stock, payable on July 17, 2023 to shareholders of record as of July 3, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $1.00 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $234.6 million was to be satisfied in cash of $219.8 million payable to holders of Class A and Class B common stock with the remaining $14.8 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures. On December 21, 2022, the Company declared a special dividend of $0.35 per share on its Class A and Class B common stock, payable on February 15, 2023 to shareholders of record as of February 1, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.35 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $81.4 million was to be satisfied in cash of $76.9 million payable to holders of Class A and Class B common stock with the remaining $4.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures. Dividends payable includes dividends declared but not yet paid and prior dividends on unvested shares of Class A common stock payable upon future vesting. $0.8 million of the cash dividend payable is classified as non-current and presented in other non-current liabilities on the consolidated balance sheets due to vesting conditions.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based Compensation Cost The following table shows the stock-based compensation cost by award type for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Equity classified awards Restricted stock units $ 10,640 $ 8,424 $ 19,019 $ 15,250 Stock options 520 906 1,146 1,918 Class B common stock 1,383 2,148 3,272 4,810 Liability classified awards 14 22 26 (208) Total stock-based compensation $ 12,557 $ 11,500 $ 23,463 $ 21,770 The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Cost of revenue Connected machines $ 191 $ 9 $ 374 $ 12 Subscriptions 214 107 329 159 Accessories and materials 249 — 524 — Total cost of revenue 654 116 1,227 171 Research and development 4,717 4,915 8,623 8,926 Sales and marketing 3,001 3,255 6,206 6,123 General and administrative 3,514 2,116 6,251 4,140 Total stock-based compensation expense $ 11,886 $ 10,402 $ 22,307 $ 19,360 Capitalized for software development costs 545 612 975 1,153 Capitalized to inventories 126 486 181 1,257 Total stock-based compensation $ 12,557 $ 11,500 $ 23,463 $ 21,770 As of June 30, 2023, there was $119.7 million of unrecognized stock-based compensation cost related to service-based awards which is expected to be recognized over a weighted-average period of 2.7 years. The total unrecognized compensation expense related to unvested performance-based restricted stock units (“PRSUs”) was $147.2 million as of June 30, 2023. 2021 Equity Incentive Plan In March 2021, the Company’s 2021 Equity Incentive Plan became effective. The 2021 Equity Incentive Plan provides for the grant of incentive stock options to employees and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants. As of June 30, 2023, 41,746,040 shares of Class A common stock were reserved for issuance under this plan including shares reserved for previously granted awards discussed below as well as shares reserved for issuance of future awards under the plan. A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows: Number of RSUs Weighted- Average Grant Date Fair Value (per share) Outstanding at December 31, 2022 6,364,022 $ 18.16 Granted 3,722,994 $ 10.60 Dividend equivalent grants 223,415 — Vested (1,549,421) $ 18.53 Forfeited / cancelled (266,194) $ 15.52 Outstanding at June 30, 2023 8,494,816 $ 14.83 In 2022, the Company granted PRSUs under the 2021 Equity Incentive Plan to certain employees that represent shares potentially issuable in the future. The PRSUs vest in two equal tranches subject to the Company achieving cumulative adjusted earnings per share over eight quarters of $4.93 per share and $6.16 per share, respectively, at any point during the 5-year performance period, subject to employees remaining with the Company through the vesting date. Adjusted earnings per share means GAAP net income adjusted to exclude income tax expenses, as well as stock-based compensation expense and payroll tax expense specifically related to the PRSU awards. A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows: Number of PRSUs (a) Weighted- Average Grant Date Fair Value (per share) Outstanding at December 31, 2022 6,295,000 $ 23.32 Dividend equivalent grants 224,351 $ — Forfeited / cancelled (205,564) $ 23.37 Outstanding at June 30, 2023 6,313,787 $ 23.32 a. Represents the maximum number of PRSUs assuming all performance targets are achieved. The expense recognized each period for these PRSUs is primarily dependent upon the Company’s estimate of the probability of achieving the performance targets. At June 30, 2023, the Company determined it was not probable any performance conditions would be achieved so no stock-based compensation was recorded for these PRSUs during the six months ended June 30, 2023. Options under the 2021 Equity Incentive Plan have a contractual term of 10 years. The exercise price of an incentive stock option and non-qualified stock option shall not be less than 100% of the fair market value of the shares on the date of grant. A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows: Number of Options Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 3,142,911 $ 20.00 4.6 $ — Forfeited / cancelled (92,560) $ 20.00 Outstanding at June 30, 2023 3,050,351 $ 20.00 4.0 $ — Vested and exercisable at June 30, 2023 2,281,992 $ 20.00 3.8 $ — During the six months ended June 30, 2023 and 2022, no options were granted. Certain employees received restricted stock unit equivalents (“RSU equivalents”) which upon vesting are settled for a cash payment equal to the difference between the Company’s stock price on the vesting date less the base price specified at the time of the grant. As of June 30, 2023, the total recognized liability for these awards was immaterial. Unvested Class B Common Stock The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the six months ended June 30, 2023 is as follows: Number of Unvested Shares Weighted- Average Grant Date Fair Value (per share) Outstanding at December 31, 2022 4,655,214 $ 20.00 Vested (1,935,246) $ 20.00 Forfeited / cancelled (303,804) $ 20.00 Outstanding at June 30, 2023 2,416,164 $ 20.00 Options to Purchase Class B Common Stock The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows: Number of Options Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 358,000 $ 9.04 2.8 $ 82 Exercised (22,000) 9.04 Forfeited / cancelled (40,000) $ 9.04 Outstanding at June 30, 2023 296,000 $ 9.04 2.3 $ 27 Vested and exercisable at June 30, 2023 296,000 $ 9.04 2.3 $ 27 During the six months ended June 30, 2023 and 2022, the total intrinsic value of options exercised was immaterial. 2021 Employee Stock Purchase Plan In March 2021, the Company’s 2021 Employee Stock Purchase Plan (“2021 ESPP”) became effective. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. As of June 30, 2023, 8,422,446 shares of our Class A common stock were available for sale under the 2021 ESPP. No offerings have been authorized to date by the administrator under the 2021 ESPP. If the administrator authorizes an offering period under the 2021 ESPP, the administrator will establish the duration of offering periods and purchase periods, including the starting and ending dates of offering periods and purchase periods, provided that no offering period may have a duration exceeding 27 months.

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
Commitment and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2023
Leases [Abstract]
Leases	Leases The Company leases office space with lease terms ranging from one The Company has determined its leases should be classified as operating leases. Variable lease costs are comprised primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and are classified as lease cost due to the Company's election to not separate lease and non-lease components. The Company incurred operating lease costs of $1.3 million and $2.7 million for the three and six months ended June 30, 2023, respectively, and $1.3 million and $2.7 million for the three and six months ended June 30, 2022, respectively. The Company also incurred variable lease costs of $0.1 million and $0.2 million, for the three and six months ended June 30, 2023, respectively, and $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $1.5 million and $3.0 million for the three and six months ended June 30, 2023, respectively, and $1.5 million and $2.8 million for the three and six months ended June 30, 2022, respectively. These amounts were included in net cash provided by operating activities in the Company's consolidated statements of cash flows. As of June 30, 2023, the maturities of the Company's operating lease liabilities were as follows: Year Ending December 31, Operating Leases (in thousands) 2023 (remainder of the year) $ 2,942 2024 5,445 2025 4,250 2026 3,796 2027 967 Total lease payments $ 17,400 Less: imputed interest $ (820) Present value of operating lease liabilities $ 16,580 Operating lease liabilities, current $ 5,439 Operating lease liabilities, non-current $ 11,141 As of June 30, 2023, the weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows: As of June 30, 2023 As of June 30, 2022 Weighted-average remaining lease term of operating leases 3.3 years 4.2 years Weighted-average discount rate of operating leases 2.5 % 2.6 %

Restructuring

Restructuring	6 Months Ended
Restructuring	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring During the three months ended March 31, 2023, the Company undertook a restructuring plan to improve efficiency and streamline operations. The Company recognized $1.2 million of severance costs which was primarily settled within the three months ended March 31, 2023. Of this amount, $0.7 million, $0.3 million, $0.2 million, were recorded within research and development, selling and marketing, and general and administrative expense, respectively.

Employee Benefit Plan

Employee Benefit Plan	6 Months Ended
Employee Benefit Plan	Jun. 30, 2023
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit PlanThe Company sponsors a 401(k) plan for the benefit of its employees who have attained at least 18 years of age. The Company matches 50% of the first 12% of an employee’s salary contributed to the plan on the first day of the month following their hire date. The Company contributed $0.7 million and $1.4 million for the three and six months ended June 30, 2023, respectively, and $0.6 million and $1.4 million for the three and six months ended June 30, 2022, respectively.

Net Income Per Share

Net Income Per Share	6 Months Ended
Net Income Per Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The computation of net income per share is as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Basic earnings per share: Net income $ 16,024 $ 13,827 $ 25,123 $ 37,331 Shares used in computation: Weighted-average common shares outstanding, basic 216,963,697 214,852,256 216,236,887 213,634,584 Earnings per share, basic $ 0.07 $ 0.06 $ 0.12 $ 0.17 Diluted earnings per share: Net income $ 16,024 $ 13,827 $ 25,123 $ 37,331 Shares used in computation: Weighted-average common shares outstanding, basic 216,963,697 214,852,256 216,236,887 213,634,584 Weighted-average effect of potentially dilutive securities: Unvested common stock subject to forfeiture 1,740,938 5,439,764 2,283,285 6,841,217 Employee stock options 32,133 2,042 14,971 81,850 Restricted stock units 1,179,071 497,578 1,062,834 642,312 Diluted weighted-average common shares outstanding 219,915,839 220,791,640 219,597,977 221,199,963 Diluted net income per share $ 0.07 $ 0.06 $ 0.11 $ 0.17 The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Employee stock options 3,050,351 3,245,818 3,050,351 3,245,818 Restricted stock units 4,728,505 6,174,330 8,068,678 3,371,942 Unvested common stock subject to forfeiture 367,133 1,062,247 552,113 511,094 As of June 30, 2023, 6,313,787 PRSUs were not assessed for inclusion in diluted earnings per share, and any potential antidilutive shares were excluded from the table above because they are subject to performance conditions that were not achieved as of such date.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information The Company’s operating segments are generally organized by the type of product or service offered. Similar operating segments have been aggregated into three reportable segments: Connected Machines, Subscriptions and Accessories and Materials. Segment information is presented in the same manner that the Company’s Chief Operating Decision Maker (“CODM”) reviews the results of operations in assessing performance and allocating resources. The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of June 30, 2023, long-lived assets located outside the United States, primarily located in Malaysia and China, were $15.0 million. The Connected Machines segment derives revenue from the sale of its connected machine hardware and related essential software. The Subscriptions segment derives revenue primarily from monthly and annual subscription fees and a portion of the revenue allocated to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services. The Accessories and Materials segment primarily consists of craft, DIY, home décor products and heat presses including the Cricut EasyPress, Cricut Mug Press, and Cricut Autopress. There are no internal revenue transactions between the Company’s segments. Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Connected Machines: Revenue $ 37,284 $ 35,438 $ 71,415 $ 97,829 Cost of revenue 33,765 34,882 66,831 95,595 Gross profit $ 3,519 $ 556 $ 4,584 $ 2,234 Subscriptions: Revenue $ 76,129 $ 67,604 $ 151,212 $ 132,382 Cost of revenue 7,898 6,181 15,529 12,433 Gross profit $ 68,231 $ 61,423 $ 135,683 $ 119,949 Accessories and Materials: Revenue $ 64,352 $ 80,715 $ 136,365 $ 198,329 Cost of revenue 48,447 57,266 112,311 136,064 Gross profit $ 15,905 $ 23,449 $ 24,054 $ 62,265 Consolidated: Revenue $ 177,765 $ 183,757 $ 358,992 $ 428,540 Cost of revenue 90,110 98,329 194,671 244,092 Gross profit $ 87,655 $ 85,428 $ 164,321 $ 184,448

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 16,024	$ 9,099	$ 13,827	$ 23,504	$ 25,123	$ 37,331

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”)
Consolidation	The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2023, or any other period. There were no material changes to the Company's significant accounting policies during the six months ended June 30, 2023.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include:
Fair Value Measurement	Fair Value Measurement The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
Earnings Per Share	Earnings Per Share Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.
Accounts Receivable	Accounts ReceivableAccounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts. If a retailer fails to follow the policies and guidelines in our sales agreements, we may choose to temporarily or permanently stop shipping product to that retailer.

Revenue and Deferred Revenue (T

Revenue and Deferred Revenue (Tables)	6 Months Ended
Revenue and Deferred Revenue (Tables)	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Changes in the Deferred Revenue Balance	The following table summarizes the changes in the deferred revenue balance for the six months ended June 30, 2023 and 2022: Six Months Ended June 30, 2023 2022 (in thousands) Deferred revenue, beginning of period $ 38,658 $ 35,405 Recognition of revenue included in beginning of period deferred revenue (27,416) (23,938) Revenue deferred, net of revenue recognized on contracts in the respective period 31,175 23,707 Deferred revenue, end of period $ 42,417 $ 35,174
Schedule of Recognition of Deferred Revenue	The Company expects the following recognition of deferred revenue as of June 30, 2023: Year Ended December 31, 2023 (remainder of year) 2024 2025 2026 Total (in thousands) Revenue expected to be recognized $ 31,828 $ 9,125 $ 1,349 $ 115 $ 42,417
Schedule of Total Revenue by Geography	The following table presents the total revenue by geography based on the ship-to address for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) North America* $ 145,124 $ 159,479 $ 292,880 $ 367,784 International 32,641 24,278 66,112 60,756 Total revenue $ 177,765 $ 183,757 $ 358,992 $ 428,540 *North America revenue consists of revenues from the United States and Canada.

Cash, Cash Equivalents, and F_2

Cash, Cash Equivalents, and Financial Instruments (Tables)	6 Months Ended
Cash, Cash Equivalents, and Financial Instruments (Tables)	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Investments	The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of June 30, 2023 and December 31, 2022: As of June 30, 2023 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities (in thousands) Cash $ 247,365 $ — $ — $ — $ 247,365 $ 247,365 $ — Level 1: Money market funds 38,756 — — — 38,756 38,756 — Subtotal 38,756 — — — 38,756 38,756 — Level 2: U.S. treasury securities 75,942 — — (578) 75,364 — 75,364 Subtotal 75,942 — — (578) 75,364 — 75,364 Total $ 362,063 $ — $ — $ (578) $ 361,485 $ 286,121 $ 75,364 As of December 31, 2022 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities (in thousands) Cash $ 155,459 $ — $ — $ — $ 155,459 $ 155,459 $ — Level 1: Money market funds 69,484 — — — 69,484 69,484 — Subtotal 69,484 — — — 69,484 69,484 — Level 2: U.S. treasury securities 74,659 — — (403) 74,256 — 74,256 Subtotal 74,659 — — (403) 74,256 — 74,256 Total $ 299,602 $ — $ — $ (403) $ 299,199 $ 224,943 $ 74,256

Inventories (Tables)

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Components of Inventories	Inventories are comprised of the following: As of June 30, As of December 31, (in thousands) Raw materials $ 39,530 $ 40,911 Finished goods 281,484 340,557 Total inventories $ 321,014 $ 381,468 Inventories current $ 294,330 $ 351,682 Inventories non-current (included in other assets) $ 26,684 $ 29,786

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
Accrued Expenses and Other Current Liabilities (Tables)	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following: As of June 30, As of December 31, (in thousands) Sales incentives $ 23,536 $ 35,552 Other accrued liabilities and other current liabilities 24,753 34,223 Total accrued expenses $ 48,289 $ 69,775

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Costs	The following table shows the stock-based compensation cost by award type for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Equity classified awards Restricted stock units $ 10,640 $ 8,424 $ 19,019 $ 15,250 Stock options 520 906 1,146 1,918 Class B common stock 1,383 2,148 3,272 4,810 Liability classified awards 14 22 26 (208) Total stock-based compensation $ 12,557 $ 11,500 $ 23,463 $ 21,770 The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Cost of revenue Connected machines $ 191 $ 9 $ 374 $ 12 Subscriptions 214 107 329 159 Accessories and materials 249 — 524 — Total cost of revenue 654 116 1,227 171 Research and development 4,717 4,915 8,623 8,926 Sales and marketing 3,001 3,255 6,206 6,123 General and administrative 3,514 2,116 6,251 4,140 Total stock-based compensation expense $ 11,886 $ 10,402 $ 22,307 $ 19,360 Capitalized for software development costs 545 612 975 1,153 Capitalized to inventories 126 486 181 1,257 Total stock-based compensation $ 12,557 $ 11,500 $ 23,463 $ 21,770
Schedule of Restricted Stock Unit Activity	A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows: Number of RSUs Weighted- Average Grant Date Fair Value (per share) Outstanding at December 31, 2022 6,364,022 $ 18.16 Granted 3,722,994 $ 10.60 Dividend equivalent grants 223,415 — Vested (1,549,421) $ 18.53 Forfeited / cancelled (266,194) $ 15.52 Outstanding at June 30, 2023 8,494,816 $ 14.83 A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows: Number of PRSUs (a) Weighted- Average Grant Date Fair Value (per share) Outstanding at December 31, 2022 6,295,000 $ 23.32 Dividend equivalent grants 224,351 $ — Forfeited / cancelled (205,564) $ 23.37 Outstanding at June 30, 2023 6,313,787 $ 23.32 a. Represents the maximum number of PRSUs assuming all performance targets are achieved.
Schedule of Stock Option Activity	A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows: Number of Options Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 3,142,911 $ 20.00 4.6 $ — Forfeited / cancelled (92,560) $ 20.00 Outstanding at June 30, 2023 3,050,351 $ 20.00 4.0 $ — Vested and exercisable at June 30, 2023 2,281,992 $ 20.00 3.8 $ — The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows: Number of Options Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 358,000 $ 9.04 2.8 $ 82 Exercised (22,000) 9.04 Forfeited / cancelled (40,000) $ 9.04 Outstanding at June 30, 2023 296,000 $ 9.04 2.3 $ 27 Vested and exercisable at June 30, 2023 296,000 $ 9.04 2.3 $ 27
Schedule of Nonvested Share Activity	The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the six months ended June 30, 2023 is as follows: Number of Unvested Shares Weighted- Average Grant Date Fair Value (per share) Outstanding at December 31, 2022 4,655,214 $ 20.00 Vested (1,935,246) $ 20.00 Forfeited / cancelled (303,804) $ 20.00 Outstanding at June 30, 2023 2,416,164 $ 20.00

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2023
Leases [Abstract]
Schedule of Lease Liability Maturity	As of June 30, 2023, the maturities of the Company's operating lease liabilities were as follows: Year Ending December 31, Operating Leases (in thousands) 2023 (remainder of the year) $ 2,942 2024 5,445 2025 4,250 2026 3,796 2027 967 Total lease payments $ 17,400 Less: imputed interest $ (820) Present value of operating lease liabilities $ 16,580 Operating lease liabilities, current $ 5,439 Operating lease liabilities, non-current $ 11,141
Schedule of Weighted Average Lease Term and Discount Rate	As of June 30, 2023, the weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows: As of June 30, 2023 As of June 30, 2022 Weighted-average remaining lease term of operating leases 3.3 years 4.2 years Weighted-average discount rate of operating leases 2.5 % 2.6 %

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
Net Income Per Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The computation of net income per share is as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Basic earnings per share: Net income $ 16,024 $ 13,827 $ 25,123 $ 37,331 Shares used in computation: Weighted-average common shares outstanding, basic 216,963,697 214,852,256 216,236,887 213,634,584 Earnings per share, basic $ 0.07 $ 0.06 $ 0.12 $ 0.17 Diluted earnings per share: Net income $ 16,024 $ 13,827 $ 25,123 $ 37,331 Shares used in computation: Weighted-average common shares outstanding, basic 216,963,697 214,852,256 216,236,887 213,634,584 Weighted-average effect of potentially dilutive securities: Unvested common stock subject to forfeiture 1,740,938 5,439,764 2,283,285 6,841,217 Employee stock options 32,133 2,042 14,971 81,850 Restricted stock units 1,179,071 497,578 1,062,834 642,312 Diluted weighted-average common shares outstanding 219,915,839 220,791,640 219,597,977 221,199,963 Diluted net income per share $ 0.07 $ 0.06 $ 0.11 $ 0.17
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Employee stock options 3,050,351 3,245,818 3,050,351 3,245,818 Restricted stock units 4,728,505 6,174,330 8,068,678 3,371,942 Unvested common stock subject to forfeiture 367,133 1,062,247 552,113 511,094

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Key Financial Performance Measures of the Segments	Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Connected Machines: Revenue $ 37,284 $ 35,438 $ 71,415 $ 97,829 Cost of revenue 33,765 34,882 66,831 95,595 Gross profit $ 3,519 $ 556 $ 4,584 $ 2,234 Subscriptions: Revenue $ 76,129 $ 67,604 $ 151,212 $ 132,382 Cost of revenue 7,898 6,181 15,529 12,433 Gross profit $ 68,231 $ 61,423 $ 135,683 $ 119,949 Accessories and Materials: Revenue $ 64,352 $ 80,715 $ 136,365 $ 198,329 Cost of revenue 48,447 57,266 112,311 136,064 Gross profit $ 15,905 $ 23,449 $ 24,054 $ 62,265 Consolidated: Revenue $ 177,765 $ 183,757 $ 358,992 $ 428,540 Cost of revenue 90,110 98,329 194,671 244,092 Gross profit $ 87,655 $ 85,428 $ 164,321 $ 184,448

Description of Business and B_2

Description of Business and Basis of Presentation (Details)	6 Months Ended
Description of Business and Basis of Presentation (Details)	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Allowances against accounts receivable	$ 7	$ 0.4

Revenue and Deferred Revenue -

Revenue and Deferred Revenue - Schedule of Changes in the Deferred Revenue Balance (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning of period	$ 38,658	$ 35,405
Recognition of revenue included in beginning of period deferred revenue	(27,416)	(23,938)
Revenue deferred, net of revenue recognized on contracts in the respective period	31,175	23,707
Deferred revenue, end of period	$ 42,417	$ 35,174

Revenue and Deferred Revenue _2

Revenue and Deferred Revenue - Schedule of Recognition of Deferred Revenue (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 42,417
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 31,828
Revenue, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 9,125
Revenue, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 1,349
Revenue, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 115
Revenue, expected timing of satisfaction, period	1 year

Revenue and Deferred Revenue _3

Revenue and Deferred Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue recognized related to performance obligations satisfied or partially satisfied in prior periods	$ 0.2	$ 1.2

Revenue and Deferred Revenue _4

Revenue and Deferred Revenue - Schedule of Total Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 177,765	$ 183,757	$ 358,992	$ 428,540
North America
Disaggregation of Revenue [Line Items]
Total revenue	145,124	159,479	292,880	367,784
International
Disaggregation of Revenue [Line Items]
Total revenue	$ 32,641	$ 24,278	$ 66,112	$ 60,756

Cash, Cash Equivalents, and F_3

Cash, Cash Equivalents, and Financial Instruments - Schedule of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Cash, Adjusted Cost	$ 286,121	$ 224,943
Debt Securities, Available-for-Sale [Abstract]
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	(578)	(403)
Assets, Adjusted Cost	362,063	299,602
Assets, Fair Value	$ 361,485	299,199
Minimum
Debt Securities, Available-for-Sale [Abstract]
Marketable securities, maturity	5 months
Maximum
Debt Securities, Available-for-Sale [Abstract]
Marketable securities, maturity	18 months
Cash
Cash and Cash Equivalents [Line Items]
Cash, Adjusted Cost	$ 247,365	155,459
Cash, Fair Value	247,365	155,459
Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	38,756	69,484
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	0	0
Fair Value	38,756	69,484
Fair Value, Inputs, Level 1 \| Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	38,756	69,484
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	0	0
Fair Value	38,756	69,484
Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	75,942	74,659
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	(578)	(403)
Fair Value	75,364	74,256
Fair Value, Inputs, Level 2 \| U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	75,942	74,659
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	(578)	(403)
Fair Value	75,364	74,256
Cash
Cash and Cash Equivalents [Line Items]
Cash, Fair Value	247,365	155,459
Debt Securities, Available-for-Sale [Abstract]
Assets, Fair Value	286,121	224,943
Cash \| Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Fair Value	38,756	69,484
Cash \| Fair Value, Inputs, Level 1 \| Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Fair Value	38,756	69,484
Cash \| Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Cash \| Fair Value, Inputs, Level 2 \| U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities
Debt Securities, Available-for-Sale [Abstract]
Assets, Fair Value	75,364	74,256
Marketable Securities \| Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities \| Fair Value, Inputs, Level 1 \| Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities \| Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Fair Value	75,364	74,256
Marketable Securities \| Fair Value, Inputs, Level 2 \| U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Fair Value	$ 75,364	$ 74,256

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 39,530,000	$ 40,911,000
Finished goods	281,484,000	340,557,000
Total inventories	321,014,000	381,468,000
Inventories current	294,330,000	351,682,000
Inventories non-current (included in other assets)	26,684,000	29,786,000
Inventory undergoing rework	$ 0	$ 4,500,000

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Sales incentives	$ 23,536	$ 35,552
Other accrued liabilities and other current liabilities	24,753	34,223
Total accrued expenses	$ 48,289	$ 69,775

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - Revolving Credit Facility - Credit Agreement		6 Months Ended
	Aug. 04, 2022 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility expiration period	5 years
Maximum borrowing capacity	$ 300,000,000
Additional borrowing capacity, increase limit	150,000,000
Additional borrowing capacity, higher borrowing capacity option	$ 450,000,000
Line of credit facility, unused fee (percentage)	0.175%
Unamortized debt issuance costs		$ 1,300,000	$ 1,500,000
Leverage ratio		3
Amounts outstanding		$ 0	$ 0
Remaining borrowing capacity		$ 300,000,000
Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (percentage)		2%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (percentage)	30.20%	32.10%	29.80%	27.80%
Provision for income taxes	$ 6,917	$ 6,524	$ 10,662	$ 14,388

Capital Structure (Details)

Capital Structure (Details) $ / shares in Units, $ in Thousands			6 Months Ended
	May 18, 2023 USD ($) $ / shares	Dec. 21, 2022 USD ($) $ / shares	Jun. 30, 2023 USD ($) vote $ / shares shares	Jun. 30, 2022 USD ($) shares	Dec. 31, 2022 $ / shares shares	Jul. 19, 2022 USD ($)
Equity, Class of Treasury Stock [Line Items]
Preferred stock, shares authorized (in shares)			100,000,000		100,000,000
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.001		$ 0.001
Common stock, shares authorized (in shares)			1,250,000,000		1,250,000,000
Common stock, shares issued (in shares)			219,830,304		219,656,587
Common stock, shares outstanding (in shares)			219,830,304		219,656,587
Dividends payable (in dollars per share) \| $ / shares	$ 1	$ 0.35
Dividends declared but unpaid \| $	$ 234,600	$ 81,400	$ 234,625	$ 0
Dividends payable, current portion \| $	219,800	76,900
Dividends, paid-in-kind \| $	$ 14,800	$ 4,500
Dividends, cash, noncurrent \| $			$ 800
Common Class A
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)			1,000,000,000
Common stock, shares issued (in shares)			52,675,233
Common stock, shares outstanding (in shares)			52,675,233
Number of votes per share \| vote			1
Number of shares issuable upon conversion (in shares)			1
Stock repurchase program, authorized amount \| $						$ 50,000
Stock repurchased and retired (in shares)			450,769
Stock repurchased and retired, value \| $			$ 4,200
Common Class A \| Existing Stockholders
Equity, Class of Treasury Stock [Line Items]
Sale of stock, shares issued in transaction			8,573,915	5,653,017
Class B common stock
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)			250,000,000
Common stock, shares issued (in shares)			167,155,071
Common stock, shares outstanding (in shares)			167,155,071
Number of votes per share \| vote			5

Stock-Based Compensation - Cost

Stock-Based Compensation - Cost By Award Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 12,557	$ 11,500	$ 23,463	$ 21,770
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	10,640	8,424	19,019	15,250
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	520	906	1,146	1,918
Class B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,383	2,148	3,272	4,810
Liability classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 14	$ 22	$ 26	$ (208)

Stock-Based Compensation - Co_2

Stock-Based Compensation - Cost Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 11,886	$ 10,402	$ 22,307	$ 19,360
Total stock-based compensation	12,557	11,500	23,463	21,770
Software Development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense, amount capitalized	545	612	975	1,153
Inventories
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense, amount capitalized	126	486	181	1,257
Total cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	654	116	1,227	171
Connected machines
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	191	9	374	12
Subscriptions
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	214	107	329	159
Accessories and materials
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	249	0	524	0
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	4,717	4,915	8,623	8,926
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,001	3,255	6,206	6,123
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 3,514	$ 2,116	$ 6,251	$ 4,140

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) tranche $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche	2
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Eight quarter cumulative adjusted earnings per share (in dollars per share) \| $ / shares	$ 4.93
Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Eight quarter cumulative adjusted earnings per share (in dollars per share) \| $ / shares	$ 6.16
2021 Equity Incentive Plan \| Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares) \| shares	41,746,040
Equity classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation cost \| $	$ 119.7
Unrecognized stock-based compensation cost, period for recognition	2 years 8 months 12 days
Performance Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation cost \| $	$ 147.2
Performance Restricted Stock Units (PRSUs) \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	5 years
Stock options \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Minimum exercise price, percentage of fair market value of shares on date of grant	100%
Employee stock \| 2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum eligible employee compensation contribution percentage	15%
Offering period	27 months
Employee stock \| 2021 Employee Stock Purchase Plan \| Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock available for sale (in shares) \| shares	8,422,446

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units Activity Under Company's Stock Plans (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Weighted- Average Grant Date Fair Value (per share)
Dividend equivalent grants (in dollars per share) \| $ / shares	$ 0
Restricted stock units \| 2021 Equity Incentive Plan
Number of Unvested Shares
Beginning balance (in shares) \| shares	6,364,022
Granted (in shares) \| shares	3,722,994
Dividend equivalent grants (in shares) \| shares	223,415
Vested (in shares) \| shares	(1,549,421)
Forfeited / cancelled (in shares) \| shares	(266,194)
Ending balance (in shares) \| shares	8,494,816
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) \| $ / shares	$ 18.16
Granted (in dollars per share) \| $ / shares	10.60
Vested (in dollars per share) \| $ / shares	18.53
Forfeited / cancelled (in dollars per share) \| $ / shares	15.52
Ending balance (in dollars per share) \| $ / shares	$ 14.83

Stock-Based Compensation - PRSU

Stock-Based Compensation - PRSU Activity (Details)	6 Months Ended
Stock-Based Compensation - PRSU Activity (Details)	Jun. 30, 2023 $ / shares shares
Weighted- Average Grant Date Fair Value (per share)
Dividend equivalent grants (in dollars per share)	$ 0
Performance Restricted Stock Units (PRSUs) \| 2021 Equity Incentive Plan
Number of Unvested Shares
Beginning balance (in shares) \| shares	6,295,000
Dividend equivalent grants (in shares) \| shares	224,351
Forfeited / cancelled (in shares) \| shares	(205,564)
Ending balance (in shares) \| shares	6,313,787
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share)	$ 23.32
Dividend equivalent grants (in dollars per share)	0
Forfeited / cancelled (in dollars per share)	23.37
Ending balance (in dollars per share)	$ 23.32

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Number of Options
Beginning balance (in shares)	3,142,911
Forfeited / cancelled (in shares)	(92,560)
Ending balance (in shares)	3,050,351	3,142,911
Vested and exercisable (in shares)	2,281,992
Weighted- Average Exercise Price
Beginning weighted average exercise price (in dollars per share)	$ 20
Forfeited / Cancelled (in dollars per share)	20
Ending weighted average exercise price (in dollars per share)	20	$ 20
Vested and exercisable (in dollars per share)	$ 20
Weighted- Average Remaining Term (Years)
Weighted average remaining terms (years)	4 years	4 years 7 months 6 days
Weighted average remaining terms, vested and exercisable (years)	3 years 9 months 18 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value	$ 0
Ending aggregate intrinsic value	0	$ 0
Vested and exercisable aggregate intrinsic value	$ 0

Stock-Based Compensation - Unve

Stock-Based Compensation - Unvested Class B Common Stock Activity (Details) - Class B common stock	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) \| shares	4,655,214
Vested (in shares) \| shares	(1,935,246)
Forfeited / cancelled (in shares) \| shares	(303,804)
Ending balance (in shares) \| shares	2,416,164
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) \| $ / shares	$ 20
Vested (in dollars per share) \| $ / shares	20
Forfeited / cancelled (in dollars per share) \| $ / shares	20
Ending balance (in dollars per share) \| $ / shares	$ 20

Stock-Based Compensation - Opti

Stock-Based Compensation - Options to Purchase Class B Common Stock (Details) - Class B common stock - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Number of Options
Beginning balance (in shares)	358,000
Exercised (in shares)	(22,000)
Forfeited / cancelled (in shares)	(40,000)
Ending balance (in shares)	296,000	358,000
Vested (in shares)	296,000
Weighted- Average Exercise Price
Beginning weighted average exercise price (in dollars per share)	$ 9.04
Exercised (in dollars per share)	9.04
Forfeited / Cancelled (in dollars per share)	9.04
Ending weighted average exercise price (in dollars per share)	9.04	$ 9.04
Vested (in dollars per share)	$ 9.04
Weighted- Average Remaining Term (Years)
Weighted average remaining terms (years)	2 years 3 months 18 days	2 years 9 months 18 days
Weighted average remaining terms, vested and exercisable (years)	2 years 3 months 18 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value	$ 82
Ending aggregate intrinsic value	27	$ 82
Vested aggregate intrinsic value	$ 27

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 1.3	$ 1.3	$ 2.7	$ 2.7
Variable lease cost	0.1	0.1	0.2	0.3
Cash paid for amounts included in the measurement of operating lease liabilities, included in net cash used in operating activities	$ 1.5	$ 1.5	$ 3	$ 2.8
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	6 years		6 years

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
2023 (remainder of the year)	$ 2,942
2024	5,445
2025	4,250
2026	3,796
2027	967
Total lease payments	17,400
Less: imputed interest	(820)
Present value of operating lease liabilities	16,580
Operating lease liabilities, current	5,439	$ 5,436
Operating lease liabilities, non-current	$ 11,141	$ 13,935

Leases - Additional Lease Infor

Leases - Additional Lease Information (Details)	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Weighted-average remaining lease term of operating leases	3 years 3 months 18 days	4 years 2 months 12 days
Weighted-average discount rate of operating leases	2.50%	2.60%

Restructuring (Details)

Restructuring (Details) $ in Millions	3 Months Ended
Restructuring (Details) $ in Millions	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 1.2
Research and development
Restructuring Cost and Reserve [Line Items]
Severance costs	0.7
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance costs	0.3
General and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 0.2

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Employer matching contribution (percentage)			50%
Employer matching contribution as a percent of employees' gross pay (percentage)			12%
Employer contribution amount	$ 0.7	$ 0.6	$ 1.4	$ 1.4

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic earnings per share:
Net income	$ 16,024	$ 9,099	$ 13,827	$ 23,504	$ 25,123	$ 37,331
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	216,963,697		214,852,256		216,236,887	213,634,584
Earnings per share, basic (in dollars per share)	$ 0.07		$ 0.06		$ 0.12	$ 0.17
Diluted earnings per share:
Net income	$ 16,024	$ 9,099	$ 13,827	$ 23,504	$ 25,123	$ 37,331
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	216,963,697		214,852,256		216,236,887	213,634,584
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture (in shares)	1,740,938		5,439,764		2,283,285	6,841,217
Diluted weighted-average common shares outstanding (in shares)	219,915,839		220,791,640		219,597,977	221,199,963
Diluted net income per share (in dollars per share)	$ 0.07		$ 0.06		$ 0.11	$ 0.17
Employee stock options
Weighted-average effect of potentially dilutive securities:
Employee stock options / Restricted stock units (in shares)	32,133		2,042		14,971	81,850
Restricted stock units
Weighted-average effect of potentially dilutive securities:
Employee stock options / Restricted stock units (in shares)	1,179,071		497,578		1,062,834	642,312

Net Income Per Share - Schedu_2

Net Income Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Performance Restricted Stock Units (PRSUs) \| 2021 Equity Incentive Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of awards issued	6,313,787		6,313,787		6,295,000
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	3,050,351	3,245,818	3,050,351	3,245,818
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4,728,505	6,174,330	8,068,678	3,371,942
Unvested common stock subject to forfeiture
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	367,133	1,062,247	552,113	511,094

Segment Information - Narrative

Segment Information - Narrative (Details) $ in Millions	6 Months Ended
Segment Information - Narrative (Details) $ in Millions	Jun. 30, 2023 USD ($) segment
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reportable segments \| segment	3
Non-US
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets \| $	$ 15

Segment Information - Schedule

Segment Information - Schedule of Key Financial Performance Measures of the Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	$ 177,765	$ 183,757	$ 358,992	$ 428,540
Cost of revenue	90,110	98,329	194,671	244,092
Gross profit	87,655	85,428	164,321	184,448
Connected machines
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	37,284	35,438	71,415	97,829
Cost of revenue	33,765	34,882	66,831	95,595
Gross profit	3,519	556	4,584	2,234
Subscriptions
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	76,129	67,604	151,212	132,382
Cost of revenue	7,898	6,181	15,529	12,433
Gross profit	68,231	61,423	135,683	119,949
Accessories and materials
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	64,352	80,715	136,365	198,329
Cost of revenue	48,447	57,266	112,311	136,064
Gross profit	$ 15,905	$ 23,449	$ 24,054	$ 62,265